NOMA THE ECONOMIC AND SOCIAL STORY SO FAR An independent report by Hatch Regeneris: 2019 NOMA THE ECONOMIC AND SOCIAL STORY SO FAR Quantifiable Achievements to Date 4 Executive Summary 8 1. Purpose of this Report 26 2. Introducing the NOMA Area 28 3. Delivering the Masterplan and Vision 42 4. Impacts Achieved to Date 60 5. The Future for NOMA and the Wider Area 74 6. Key Reflections 82 Disclaimer: This report was prepared by Hatch Associates Limited (“Hatch”) for the sole and exclusive use of Hermes Investment Management, and may not be provided to, relied upon or used by any third party without Hatch’s prior written consent. Economic and Social Study | 2019 NOMA IS A 20-ACRE NEIGHBOURHOOD IN MANCHESTER’S CITY CENTRE, CREATING 4M SQ FT OF NEW HOMES, OFFICES, HOTELS, RETAIL AND LEISURE SPACE DEVELOPED AROUND VIBRANT URBAN SPACE AND PUBLIC REALM. 2 3 Economic and Social Study | 2019 Quantifiable Achievements to Date AROUND OVER 5,500 £4.5 MILLION EMPLOYEES GENERATED WORKING ACROSS IN SOCIAL VALUE THROUGH VOLUNTEERING, THE NOMA AREA TO DATE TRAINING AND APPRENTICESHIPS 1. £150m construction spend so 2. Around 60% of the total 3. Over 1,000 construction workers 5. Around 5,500 employees working 6. Around £210m in wages 8. £7m of ERDF funding granted far, 70% of which was spent construction jobs were filled by received on the job training. across the NOMA area to date, in and £380m in GVA generated for public realm and within Greater Manchester. Greater Manchester residents. occupations related to finance and per annum. infrastructure improvements, 4. Over 80 apprentices involved professional services, IT, digital, including Sadler’s Yard – a new with the redevelopment so far. 7. Over £4m of business rates technology, creative sectors, food City Centre public square. revenue generated by occupied & drink, as well as third sector and premises across NOMA. social enterprises. 4 5 Economic and Social Study | 2019 £150 MILLION AROUND CONSTRUCTION £210 MILLION SPEND — IN WAGES 70% WITHIN AND £380 MILLION IN GVA GREATER MANCHESTER PER ANNUM 9. Around 20,000 visitors have 10. Over 1,000 volunteers have 11. Over £4.5million generated 12. £25,000 of funding awarded via 13. Around 600 further high skilled 14. Around 460 new homes due to attended events at NOMA over helped design, develop and run in social value through the NOMA Community Fund technology jobs will soon be completed in 2019 as part of the last three years. events as part of the regeneration volunteering, training & be located in NOMA linked the Angel Gardens (MODA) PRS of NOMA. apprenticeships, health to Amazon’s deal to move to development. and wellbeing. Hanover building. 6 7 Economic and Social Study | 2019 Executive Summary NOMA IS RAPIDLY EMERGING AS A LEADING INNOVATION DISTRICT AND AN ATTRACTIVE LOCATION FOR BUSINESSES OPERATING IN THE SPHERES OF TECHNOLOGY, CREATIVITY AND INNOVATION. 8 9 Economic and Social Study | 2019 Executive Summary A significant placemaking programme has taken place at NOMA since the mid-2000s. This includes: COMPREHENSIVE EVENTS PROGRAMME A NEW PUBLIC REALM COMMUNITY ENGAGEMENT INITIATIVES i. NOMA is an 8-hectare regeneration area to the community engagement initiatives. These activities ii. This report tells the story of how NOMA has iii. The report has been commissioned by Hermes north of Manchester City Centre. Alongside and progress to date have helped to reposition evolved and assesses the economic, social and Investment Management. investment in new commercial buildings and NOMA, with the area becoming a City Centre environmental benefits of the development NOMA’s historic estate, a significant placemaking location within its own right. NOMA is rapidly achieved to date. As well as assessing progress, programme has taken place since the mid- emerging as an attractive location for businesses the report also looks to the scheme’s future 2000s. This has included new public realm, a operating in the spheres of technology, creativity and how these benefits could develop as further comprehensive events programme and extensive and innovation. stages of the masterplan are implemented. 10 11 Economic and Social Study | 2019 The Story and Achievements to Date IMPROVED INFRASTRUCTURE NOMA. NOMA’S REGENERATION ENHANCING AN INTEGRAL ROLE VISION CREATES A CONNECTIONS IN THE ECONOMIC DISTINCT AND VIBRANT AT NOMA AND LANDSCAPE NEIGHBOURHOOD THE CITY CENTRE OF MANCHESTER DUE TO THE INVESTMENT SINCE THE LATE 18TH CENTURY AT NOMA NEW & DIVERSE £150 MILLION OF BUSINESSES AND SECTORS CONSTRUCTION INVESTMENT HAVE EMERGED HAS BEEN MADE FROM THE DEVELOPMENT FRAMEWORK SINCE THE REGENERATION OF NOMA AND PRINCIPLES FOR NOMA BEGAN IN 2010 iv. The area now known as NOMA has played v. The vision set the development framework and vi. Since the regeneration of NOMA started in vii. Investment at NOMA has not solely focussed an integral role in the economic landscape of principles for NOMA. The principles were wide 2010, almost £150m of construction investment on buildings. There have been significant Manchester City Centre since the late 18th Century, ranging but included the restoration and re-purposing has been made. Investments include the purpose- improvements to infrastructure, including from Arkwright’s Shudehill Mill as part of the of the historic estate to support a new and more built Co-operative Group Headquarters at 1 Angel the ring road improvements which have industrial revolution, through to the Co-operative diverse mix of businesses and sectors in this part Square and the sympathetic refurbishment and improved permeability through enhanced Group being the dominant mono-occupier in of the City Centre; regeneration of brownfield land re-purposing of historically significant buildings connections across the whole of the NOMA the area and the development of their estate. to support the development of new commercial such as Hanover and Federation buildings. area with the City Centre and communities As the Co-operative Group sought to rationalise and mixed-use floorspace; and the introduction Despite ownership changes, Hermes, in its role to the north of the City Centre. its estate and to develop a new headquarter of new residential living and new public spaces. as investment manager, has continued with building, a regeneration vision was developed Placemaking was at the heart of the NOMA the sensitive refurbishment, restoration and in partnership with Manchester City Council to regeneration vision in order to create a distinct and reinvention of the historic estate. This is still shape the future development of NOMA. vibrant neighbourhood within the City Centre. on-going, with Russells Construction leading Manchester City Council has continued to be the construction activity. instrumental in the delivery of the NOMA vision. 12 13 Economic and Social Study | 2019 The Story and Achievements to Date PUBLIC REALM ENVIRONMENTAL IMPROVEMENTS SUCH SUSTAINABILITY AND AS SADLER’S YARD HERITAGE PRESERVATION HAVE TRANSFORMED THE AREA FROM AN EMPLOYMENT LOCATION HAS BEEN AN OVERRIDING OBJECTIVE AND AMBITION TO A VIBRANT NEIGHBOURHOOD THROUGH THE DESIGN AND CONSTRUCTION OF BUILDINGS IN NOMA Hanover architectural features viii. With support from Manchester City Council and The community engagement programme has xi. Progress in the development and regeneration of xiii. The developments undertaken within NOMA so far the European Regional Development Fund (ERDF), also encouraged and created volunteering NOMA has not been at the pace that was originally have helped to create a distinct identity, changed public realm improvements such as Sadler’s Yard opportunities for the local community to get in anticipated since 2009/10. There are several perceptions and helped raise awareness of NOMA and Angel Square have helped to transform involved in. All these activities have complemented reasons which have contributed to this, including as location for work, life and leisure. As a result, the area from an employment location to an the public realm improvements. the wider effects of the financial crisis and a fall in the area is becoming a desirable location for increasingly vibrant neighbourhood. Developer- investor confidence post-recession. To date, only investment, with Amazon’s technology teams x. Throughout this transformation, environmental led placemaking initiatives including community around a third of the buildings or development moving to Hanover building in 2019 being the sustainability and heritage preservation has been built pub The Pilcrow and PLANT NOMA have also plots identified within the NOMA masterplan area most recent evidence of this. an overriding objective and ambition. Through the contributed to the evolution of the area. have been developed or are occupied, while several environmental excellence achieved in the design xiv. Since construction began in 2010, the redevelopment of the surface car parks remain operational. ix. Hermes has also placed community and and construction of buildings in NOMA and the of NOMA has made a significant contribution to engagement at the heart of redevelopment. sensitive preservation of existing assets such as xii. Nonetheless, there has been clear momentum injected the economic and social value of Manchester. Community campaigns such as #NameOurSquare Hanover, a precedent for future development has to the regeneration process in recent years with and an extensive events programme including been set not only within the NOMA, but across refurbishment of other historic buildings underway Manchester International Festival events and the the City Centre. and proposals developing for new commercial Winter Workshops demonstrate this. buildings adjacent or near to 1 Angel Square. 14 15 Economic and Social Study | 2019 Impacts to Date 2,250 CONSTRUCTION OVER £3M WORKERS OR HAS BEEN GENERATED 280 JOBS PER YEAR IN SOCIAL VALUE OVER THE LAST EIGHT-YEARS – WITH OVER 60% OF THESE FROM OVER 1,000 VOLUNTEERS JOBS FILLED BY GREATER MANCHESTER RESIDENTS ACROSS NOMA TO DATE APPROX 80 APPRENTICESHIPS CREATED DURING THE REDEVELOPMENT OF HANOVER AND 1 ANGEL SQUARE xv. The estimated construction investment in the xvi. The businesses that operate across NOMA also xviii.